Chinese police arrest key members of pyramid scheme

Xinhua Published: 2017-09-12 09:44:43
Comment
Share
Share this with Close
Messenger Messenger Pinterest LinkedIn

Several key members of Shanxinhui, a company suspected of organizing and leading a pyramid scheme, have been arrested in Yongzhou in central China's Hunan Province, police announced Monday.

Zhang Tianming, the mastermind of Shanxinhui. [Photo: thepaper.cn]

Zhang Tianming, the mastermind of Shanxinhui. [Photo: thepaper.cn]

Several key members, including Zhang Tianming, the mastermind of Shanxinhui, are suspected of obtaining illegal gains of more than 2.2 billion yuan (337.22 million U.S. dollars), according to the Ministry of Public Security.

The suspects intentionally distorted the country's targeted policy to eradicate poverty under the guise of helping the poor and building a so-called "new economic ecological model," while setting up a network on the Internet, the ministry said in a statement.

Shanxinhui allegedly enticed people to take part in pyramid selling by promising "high returns" and cheated them out of huge amounts of property, severely disrupting economic and social order, it added.

The ministry said it would maintain pressure on curbing pyramid selling to safeguard people's interests.

Zhang, 42, founded Shenzhen Shanxinhui Culture Communication Co. Ltd. in south China's Shenzhen in May 2013, and Hainan Shanxinhui in May 2016.

Pyramid schemes have been expanding widely through social networks in recent years.

Police investigated 2,826 pyramid scheme cases in 2016, 19.1 percent more than that in 2015, the ministry's figures showed.

Related stories

Share this story on

Most Popular

Photo

Highlights of WTA Wuhan Open singles 2nd round
Yellow Mountain bathed in a sea of clouds
Man rents shipping container, turns it into elegant apartment
Chinese vice premier watches 'hoops' in NYC
Li Na tastes local delicacy during WTA Wuhan Open
Giant tuna captured in South China Sea

News

A technology-oriented day trip in Hefei
Technology, art, culture collide in Hefei
China's self-built icebreaker "Xuelong 2" to complete in 2019
New air route linking Wuhan, Manila opens
UK's first bilingual Mandarin nursery school expands
Kissinger calls for cooperative U.S.-China relationship